iPhone 5 and iPad 2 rumoured to have NFC chips

The next generation of Apple products will have NFC capability built in, according to a tech analyst.

NFC stands for near field communication and means that your phone could be used for contactless payment, as a ticket or even doorkey. It can also take in information from advert boards or other locations.

Ricahrd Doherty, who knows “engineers who are working on hardware”, told Bloomberg that, “Apple has created a prototype of a payment terminal that small businesses, such as hairdressers and mom-and-pop stores, could use to scan NFC-enabled iPhones and iPads.”

Both Google’s Nexus S and the Nokia C7 have NFC already- but there’s nowhere to even use yet. McDonalds are promising to roll out NFC payment across all their UK stores by October this year, and credit cards can now be bought with NFC chips inside; Barclays offer contactless payment on their latest bank cards.

The technology is already widely used in Japan, where people can board trains and shop at convenience stores through contactless cards and phones. They have even released special bumpers for the iPhone, that’s the picture we used above, which are attached to the back, and act independently of the phone.

London’s Oyster card also uses similar technology, and card can be topped up and used to pay for bus, train and underground journeys.

Connecting with your iTunes account could mean any gift cards or bank details already registered with Apple could be instantly put to use through your phone.